You don't need 'smart' to run a successful country, all you need is stable. Philosopher boats send out the reactionary, the liberal, the Brechtian 'good men'. Removal functions and enforces so long as it is effective in strength. There's always general intel to fall back on
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most likely, both. reinforcement until correction from the outside (takes time, though).
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As smart fraction declines, this "boiling off" concentrates the underclass, further lowering attractiveness to remaining cognitive elites. They get up and get out, accelerating decline. American slums are a perfect example.
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